Trimble reports mixed Q1 results with transportation revenue down, recurring revenue growing

Trimble (NASDAQ:TRMB), a provider of technology solutions across various industries including transportation and logistics, announced its first-quarter results, showing a decline in overall revenue but continued growth in annual recurring revenue within its transportation segment despite a challenging freight market.

For the first quarter, Trimble reported total revenue of $840.6 million, an 11.8% decrease compared to the same period last year. Adjusted earnings per share stood at 61 cents, a 5% decrease year over year.

Despite the top-line decline, the company surpassed Wall Street expectations, which had projected revenue of $807.4 million and earnings per share of 59 cents.

Within the transportation and logistics segment, first-quarter revenue was $146 million, marking a 25% decrease year over year. However, CEO Rob Painter highlighted resilience in the segment's recurring revenue streams.

"Trimble’s transportation and logistics segment saw 7% annual recurring revenue growth in the quarter despite the ongoing freight recession," Painter said in a call with analysts.

Growth in the transportation segment was primarily fueled by strong performance in the company's Maps and Transporeon business units.

Painter noted that "Annual recurring revenue in transportation grew 7% to a record $459 million."

He also provided a geographic breakdown of the transportation revenue, with 40% coming from Europe, the Middle East and Africa, 57% from North America, and 3% from the rest of the world.

Painter added that the mission-critical nature of their systems provides "downside ballast if China-U.S. trade further deteriorates."

Looking ahead, Trimble provided financial guidance for the second quarter, anticipating revenue in the range of $815 million to $845 million and earnings per share between 59 cents and 65 cents.

For the full year, the company expects earnings in the range of $2.76 to $2.98 per share on revenue ranging from $3.37 billion to $3.47 billion.